40553 - BOA RSF

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Summary of Investment Information

Project Number

40553

Company Name

BANK OF AFRICA GROUP SA

Date SPI Disclosed

Feb 22, 2018

Country

Africa Region

Region

Africa

Projected Board Date

Mar 26, 2018

Environmental Category

FI-2 - Limited

Status

Pending Signing

Last Updated Date

Mar 31, 2018

Department

Regional Industry - FIG ME & Africa

Industry

Financial Markets

Previous Events

Approved : Mar 30, 2018

Sector

Other Non-Banking Financial Institution (NBFI)

Additional Project Attributes

Blended Finance

Project Description

The proposed project entails the provision of a 5-year Risk Sharing Facility (“RSF” or the “Facility”) in the amount of US$60 million to cover ten Bank of Africa (“BOA”) subsidiaries in IDA and FCS countries – namely Bank of Africa Burkina Faso, Bank of Africa Cote d’Ivoire, Bank of Africa RDC, Bank of Africa Ghana, Bank of Africa Madagascar, Bank of Africa Mali, Bank of Africa Niger, Bank of Africa Senegal, Bank of Africa Tanzania, and Bank of Africa Togo, together the Participating Affiliates (“PAs”) for a target portfolio of SME loans in the amount of up to US$120 million equivalent. Under this project, IFC will be supporting the expansion of this regional banking group’s SME lending across sub-Saharan Africa.

Associated Advisory Engagement

The project includes an Advisory Services (“AS”) engagement whereby IFC will provide targeted support to the 10 BOA Participating Affiliates to strengthen the bank’s capacity to serve SMEs. The Project will have three AS components, which support and complement the risk sharing program to enable the Group to unlock its SME growth potential in IDA/FCS countries. These include (i) operational implementation, (ii) pipeline development and (iii) capacity building support..

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	75.0
Loan
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Guarantee	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The most significant expected project-level impact is derived from the expansion of access to finance for SMEs, including women owned SMEs and SMEs making climate related investments in 10 IDA and/or FCS countries. Increased access to finance for these underserved segments is expected to have positive economic and job creation impacts. Beyond the project, the main source of expected market impact is derived from the promotion of inclusiveness via the demonstration and capacity building channels.

- Financial Structuring and Long-term Partnership: IFC has (i) a solid track record of structuring regional multi-country projects in IDA/FCS countries; (ii) the capacity and on the ground resources to deliver such projects; iii) global expertise in setting up risk sharing facilities; and iv) a strong regional presence along with being uniquely positioned with investment and advisory services of the scale and scope BOA requires to implement its group-wide SME strategy and successfully develop SME banking in IDA/FCS countries. - Technical and industry knowledge: IFC will incentivize and support the Participating Affiliates from a technical perspective to develop lending activities to underserved segments such as women-owned SMEs and climate-related projects: IFC will provide AS on SME and BOW as well as introduce climate finance tools to help the client develop their activities in this space.

E&S Category Rationale / Risks and Mitigation

The project has been categorized as FI-2 in accordance with IFC's Environmental and Social Sustainability Policy. The project consists of a risk-sharing facility to support the SME portfolios of 10 BOA subsidiaries. The E&S risks and impacts associated with SME activities are considered limited and can be readily addressed through mitigation measures. The overall portfolio risk is thus considered medium. The applicable E&S requirements for this project are the IFC Exclusion List and the applicable environmental and social laws in the countries where the subsidiaries are located.

The main E&S risks and impacts associated with this project relate to the ability of the subsidiaries to identify and manage the E&S risks and impacts associated with their lending activities in line with IFC's policy requirements. In line with IFC's E&S requirements, the Group has an E&S Officer and an E&S Management System (ESMS) for identifying and managing the E&S risks associated with its clients' activities. This ESMS meets IFC's E&S requirements and is applicable to all subsidiaries. All the subsidiaries under this project will be required to confirm the names of the designated E&S Officers and the adoption of the Group ESMS. Although, BOA Group has provided training on the implementation process to all subsidiaries, additional E&S risk management will need to be provided to these subsidiaries to enhance their E&S risk management capacity.

Contacts

For Inquiries About the Project, Contact

BOA Group
Mr. Abderrazzak Zebdani
Deputy Group CEO
+221 33 865 63 82
azebdani@boaholding.com
Immeuble Elan, Route de Ngor, Almadies, Dakar, Senegal
www.bank-of-africa.net

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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Task Title & Description	Anticipated Completion Date
Nominate officers	03/31/2018
Establish SEMS	03/31/2018
Staff Training	06/30/2018
Training Plan & Implementation Plan	03/31/2018
Verification of ESMS Implementation Process	09/30/2018
Labour & Working Conditions	09/30/2018
Life and Fire Safety	09/30/2018
External Communication Mechanism	09/30/2018

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